5 Things to Ask Before Choosing Your Real Estate Agent

Five Important Things to Ask Before Choosing
Your Real Estate Agent

Once you’ve decided to buy a property, a key
step is finding a real estate agent who can help you achieve your
goal. Not enlisting an agent is, in fact, one
of the biggest mistakes a homebuyer can make. For that
matter, the same is true if you want to offload your property.

But how exactly do you go about choosing the
right agent for you? In January 2017, the Council for Estate
Agencies (CEA) reported that there are 1,286 licensed property
agencies and 28,397 registered property agents operating in
Singapore. The CEA didn’t give a breakdown of whether the agents
are full-time or part-time. Nevertheless, that’s almost 30,000
candidates to choose from.

And if you’re a serious property hunter,
you’re going to be spending quite a lot of time with him or her. So
picking the right one is essential. Don’t pick someone with whom
you’re so chummy that you can’t have a serious conversation about
finances, or someone you feel uncomfortable disagreeing with. The
ideal agent is someone who’s experienced, professional, fair and
ethical. He or she must be able to provide a good listening ear,
address your concerns and be willing to fight for the best deal for
you.

To start off, you might ask your circle of
friends, family, colleagues or business associates for
recommendations. Once you’ve compiled a list of names, the next
step is to screen these agents. Think of it as a casting call for
the lead role in your movie – the one where you find the home of
your dreams! A quick call to go over a few basic – but thoroughly
essential – questions will help narrow the selection. Here are five
of the most important questions you need to ask.

1. “How
long have you been in the business?”

Experience counts, and here’s why: the more
transactions an agent has handled, the better he/she is equipped to
handle negotiations, fight for deals, and manage any problems
should they arise. Also, agents are commission-based. Like any
business that relies on customers for survival, – much less in the
cutthroat world of real estate – it would be very difficult for an
agent to last long if he/she provided lousy service. Plus, in this
era of social media, an agent with a bad rep would find
himself/herself out of business pretty soon.

2. “Will I
be working directly with you or with one of your
associates?”

Some of the best agents are also the top
producers in their agencies. What this means is that they’re likely
to be team leaders, with a chain of junior agents and
administrative assistants in their downline. The top producers may
occasionally delegate some tasks to them. Just bear in mind that it
may not be possible for top producers to handle all aspects of your
transactions. And as these agents are very busy individuals, they
may not be at your beck and call 24/7.

3. “Do you
have any references I can contact?”

Until such time that a Yelp for real estate
agents becomes available, your best bet when ascertaining the
legitimacy of your agent is by contacting their past customers.
Just as you would research a product online before buying it,
hearing from a third party can be useful in providing peace of
mind. Just note that more experienced agents may take offence when
asked for references, in which case, just move on to the next
candidate.

4. “How
much do you charge?”

There is no fixed commission rate for real
estate agents in Singapore; all commissions are negotiable. That
said, there is a prevailing market rate: for buyers of HDB flats,
it’s 1% of the purchase price. For sellers of HDBs, it’s 2% of the
selling price. Both of these are subject to 7% GST if the agents
hail from GST-registered agencies. For buyers of private
properties, agents typically don’t charge commission; instead, they
split the commission with the seller’s agent, usually 2% of the
selling price.

5. “What’s your
strategy for my needs?”

A good agent will have an array of strategies and
marketing plans that he/she can deploy depending on the needs of
the customer. For buyers, you’ll need to know how your agent
intends to search for your property, how many properties he/she
intends to shortlist, and whether or not he/she has other buyers
competing for the same type of property. For sellers, you’ll need
to know how your agent intends to market your property, how
frequently he/she will advertise, and through what media channels
he/she intends to do so.

There is no fixed commission rate for real estate
agents in Singapore; all commissions are negotiable. That said,
there is a prevailing market rate: for buyers of HDB flats, it’s 1%
of the purchase price. For sellers of HDBs, it’s 2% of the selling
price. Both of these are subject to 7% GST if the agents hail from
GST-registered agencies. For buyers of private properties, agents
typically don’t charge commission; instead, they split the
commission with the seller’s agent, usually 2% of the selling
price.